Benefits of the FHA Home Loan Program | Things You Need to Know!

You will find many home loan programs to finance your new home purchase. You must study the different programs that you have at your disposal and choose the program that best suits your needs. One of the best options available is the FHA home loan program. Although the FHA home loan program is designed for first-time home buyers, anyone can apply for this program. An FHA home loan can be used not only to finance the purchase of a new primary residence but also to refinance an existing home loan.

Low Down Payment Requirement

Currently, the down payment requirement is as low as 3.5 percent of the purchase price. There is other good news here, the down payment can be obtained from a variety of sources, such as a gift from a family member or when leaving your church. This, of course, can come from your own background. Since you can get your down payment from a variety of sources, this makes buying your home that much easier.

Seller Can Help Pay Your Closing Costs

The FHA home loan program allows the seller to contribute up to 3% towards the closing costs of their new home. If you receive a gift from family members for your down payment and ask the seller to pay up to 3 percent of the closing costs, this will allow you to purchase a new home at no cost. The closing costs that the seller can pay include prepayments such as property taxes, homeowners insurance, and interest.

The Interest Rates are Low

While FHA home loan rates are very competitive, they are not lower than many other home loan rates. Although in today's mortgage market you need 620 credit points to obtain an FHA home loan, the FHA interest rate does not depend on your credit score. If your credit score is 620 and someone else's credit score is 750, they both get the same interest rate. With a typical home loan, someone with a higher credit score gets a lower interest rate.

No Limits on The Amount of The Mortgage

There are no restrictions on the number of FHA home loans, but there are restrictions on the value of the property that you can buy with an FHA loan. Restrictions on property values ​​vary across the country and you should contact a real estate agent or lender in your area.

Refinance with A FHA Streamline Mortgage Refinance Loan

If you already have an FHA home loan, one of the biggest benefits is that you can refinance using an FHA Streamline home refinance loan. This type of refinancing is when you already have an existing FHA mortgage and want to refinance it with a new FHA mortgage. You can do this without limited documentation and at a very low cost.

The FHA home loan program is a great way to buy a new home with a low down payment, low-interest rate, and the ability to refinance with limited paperwork and expenses. The best place to learn more is the Internet. You will find many websites with information on FHA loans to help you finance your new home!